The Securities and Exchange Commission (SEC) said Wednesday it revoked the broker-dealer license of Mount Peak Securities following multiple regulatory violations, including fraudulent financial reporting, unauthorized use of client securities and the operation of a dummy trading account.
The SEC said it also imposed P17.25 million in penalties against the company for violating 12 provisions of the implementing rules and regulations of the Securities Regulation Code.
It said it revoked the salesman license of Mount Peak president Wilster S. Gaweco and the associated person license of Mount Peak associated person Marie Stephanie Gaweco. The SEC said it perpetually disqualified both individuals from becoming registered persons under the Securities Regulation Code.
It said the sanctions stemmed from an investigation that the Capital Markets Integrity Corp. (CMIC) conducted, which uncovered irregularities in the operations, books, records and back-office systems of Mount Peak.
The CMIC placed Mount Peak under involuntary suspension in August 2025, saying that the continued operations of the firm could harm the Philippine Stock Exchange (PSE) and the investing public.
According to the SEC, Wilster SGaweco admitted that he maintained an account under the name “Michael Malate” as a dummy account for his personal benefit.
The regulator said Mount Peak used the account to execute trades disguised as client transactions and later updated the account information to create an appearance of regulatory compliance.
Mount Peak also breached minimum risk-based capital adequacy (RBCA) requirements after adjustments that the CMIC made showed the firm failed to meet the required threshold, the regulator said.
“In the instant case, notwithstanding its breach of the minimum prescribed RBCA ratio across various periods, [Mount Peak] did not cease doing business nor notify the PSE and the Commission of such breach… [W]orse, [the company] submitted incorrect RBCA Reports to make it appear that the Company is compliant with capital adequacy requirements,” the SEC decision read.
The commission said Mount Peak failed to maintain sufficient funds in its reserve bank account for customer money balances, with records showing zero balances in August 2024 and February 2025.
The SEC Commission en banc is reviewing the decision after Mount Peak filed an appeal.
